This is the fifth post in my Becoming a Better System Trader blog series. The last post was a quick video explaining what a Backtest is and how to find optimal parameters.
ICYMI Here are all the posts in the series:
Anyways, assume we have found optimal parameter setting(s) using our in-sample data. Now what?
Well, it is time for some out-of-sample testing; time to feed the model some data it has never seen before!
In this short video below I will go over a few different types of walk forward analysis in order to better ready your system for live-trading.
Walk Forward Analysis Explained
Out-of-sample testing is one of the final checks on how your model can be expected to perform on unseen data.
As always, if you have any questions please feel free to ask.
David <-About Me
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